Star Cement Reports Strong FY26 Performance, Profit Jumps Significantly

Star Cement Limited has announced robust financial results for the fiscal year ending March 31, 2026. Revenue from operations grew to ₹3,776 crore, up from ₹3,163 crore in the previous fiscal year. The company's profit after tax (PAT) saw a substantial increase, reaching ₹390 crore in FY26 compared to ₹169 crore in FY25.

Financial Highlights for FY26

For the fourth quarter of FY26, Star Cement reported revenue from operations of ₹1,174 crore. Full-year figures for FY26 show revenue at ₹3,776 crore and EBITDA (excluding exceptionals) at ₹955 crore. The PAT for the full fiscal year was ₹390 crore, with Q4 FY26 PAT at ₹147 crore. Cement sales volume for Q4 FY26 reached 16.18 lakh tons. As of March 31, 2026, the company's gross debt was ₹583 crore, resulting in a net debt of ₹200 crore.

Growth Drivers and Future Outlook

The company's improved operational efficiency, evidenced by an EBITDA per ton of ₹1,738 in FY26 (up from ₹1,245 in FY25), has contributed to the strong profit growth. Star Cement is projecting a volume growth of 10-12% for fiscal year 2027. To support this expansion, the company plans capital expenditures of ₹600-700 crore for FY27 and ₹1,500 crore for FY28. A new plant in Bihar is also in progress, expected to be operational in approximately two years, with clinker initially sourced from Meghalaya.

Potential Challenges

Management has noted potential near-term cost pressures in Q1 FY27, particularly from coal supply and rake shortages, which could affect margins. Additionally, Star Cement faces increasing competition in the Northeast region from new market entrants. The company also recorded a ₹10 crore donation expense in Q4 FY26 and anticipates a reduction in government subsidies by ₹40-50 crore for FY27.

Key Metrics and Next Steps

Key metrics from FY26 include revenue of ₹3,776 crore and PAT of ₹390 crore. Q4 FY26 EBITDA was ₹324 crore, and net debt stood at ₹200 crore at the end of the fiscal year. Investors will be watching the company's ability to navigate rising fuel costs, manage competitive pressures, and execute its expansion plans in Bihar, Haryana, and Rajasthan.